Question
The following information pertains to a machine purchased by Bakersfield Company on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated useful
The following information pertains to a machine purchased by Bakersfield Company on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated useful life Estimated units the machine will produce Estimated salvage value $ 80,000 3,300 $ $ 4,700 a. Straight-line. b. Double-declining-balance. c. Units-of-production. 5 years. 166,600 $ 4,700 The machine produced 16,100 units during Year 1 and 18,700 units during Year 2. Required Determine the depreciation expense Bakersfield would report for Year 1 and Year 2 using each of the following methods:
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
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